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Bhattal must resign On to the polls |
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Punjab follows Centre
Cut in fiscal deficit — really?
Remembering a gentle soul
Follow Up Defence Notes
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Bhattal must resign PUNJAB Deputy Chief Minister Rajinder Kaur Bhattal’s position in the Cabinet has become highly untenable following the framing of charges against her in the case of alleged misappropriation of Rs 20 lakh from the Chief Minister’s Relief Fund during her brief tenure as Chief Minister. The best course open to her at this stage is to resign on moral grounds and come back to the ministry after her name is cleared. By clinging to power, she is only weakening her argument. After all, the case against her is not political but that of misappropriation of funds. What is more, charges have been framed only after the Punjab and Haryana High Court had rejected the Punjab Government’s pleas against the move. This shows there is a prima facie case against her. Ironically, by protesting that the state government has not helped her fight her case, Mrs Bhattal has unwittingly confirmed that she is trying to utilise her position as Deputy Chief Minister to clear her name. She was appointed Deputy Chief Minister as part of a political settlement with the Chief Minister. But that does not mean that it should be the duty of the state government to shield her from law. The Congress high command, which had bought peace among the Bhattal and Amarinder factions by elevating her, could not be unaware that her continuation would have political repercussions, especially when the Lok Sabha elections are round the corner. If Mrs Bhattal does not take the right step herself, perhaps the high command may have to step in. That will be all the more embarrassing for all concerned. Capt Amarinder Singh has said—apparently for record’s sake—that she need not resign. But his real feelings are hardly a secret. He is now open to uncomfortable questions about the status of his much-publicised drive to eradicate corruption. |
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On to the polls WITH President A.P.J. Abdul Kalam ordering dissolution of the 13th Lok Sabha as recommended by Prime Minister Atal Bihari Vajpayee, the stage is now set for the contest to elect 543 members in April-May. This would be the first general election with Mr Kalam in Rashtrapati Bhavan and the second on the advice of Mr Vajpayee. While the last two elections were compelled because of ruling coalitions losing their majority, this time, the Vajpayee-led NDA advanced the polls by eight months to cash in on what NDA perceives as the “feel good” factor. The economic upswing and the political trend underscored by the BJP's landslide victory in the recent assembly elections in Madhya Pradesh, Chhattisgarh and Rajasthan tilted the scales in favour of early polls. Unquestionably, the front-runner in this race, for which the decks have been now cleared, is Mr Vajpayee. This gives a winnable face to the BJP and the NDA and makes it abundantly clear that Mr Vajpayee is their prime ministerial candidate. In stark contrast, the Congress-led Opposition is not in a position to tell the electorate of who their Prime Minister would be. Congress President Sonia Gandhi has said that this would be decided by a majority of elected members after the polls. This calculated ambivalence has left enough room for Congressmen to presume that none else than Mrs Gandhi could be the “natural choice” while the allies are proceeding on the assumption that she has ruled herself out of the running for the top job. Whatever the outcome, it is a contest between two coalitional arrangements. Although a reluctant convert to coalition politics, the Congress has shown surprising political dexterity in winning back old enemies. Mrs Gandhi's lunch on the concluding day of the last Lok Sabha, attended by leaders of almost all parties outside the ruling NDA is an attempt at gathering anti-BJP parties. There are contradictions in the Congress-led partnership but so are there in the BJP's own alliance. As the countdown begins on who is to govern for the next five years, one certain answer is that it would be a coalition ministry. |
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Punjab follows Centre WHEN the Union interim Budget announced the merger of 50 per cent DA with the basic pay of the Central staff, it was expected that the states and PSUs too would be forced to follow suit under employees’ pressure, straining their limited resources. Because of a buoyancy in revenue collections, the Centre can afford to hand out such a pre-election bonanza to the employees. The finances of most states, unsettled by the fifth Pay Commission report, do not permit such giveaways. The ailing PSUs are also hard put to effect a raise in their pay scales. But they have to, even if it means sinking deeper into the red. The Punjab Chief Minister has shown haste in unilaterally announcing the benefit to the state employees. It is not immediately clear how much additional burden the state exchequer will have to bear. Capt Amarinder Singh has often pointed to the near bankruptcy of the state treasury for which he rightly blames the previous Badal government’s profligacy. But, like his predecessor, he too has indulged in populism. The Punjab employees, studies point out, are already the highest paid in the country. The Himachal Pradesh Chief Minister has already announced that his state will follow Punjab on this issue. This will increase pressure on other state governments also. Although the merger of the DA with the basic pay is justified on the ground that the fifth Pay Commission had recommended this, but it is essentially the electoral compulsions that have led to this decision, both at the Centre and in Punjab. The Pay Commission has also suggested rightsizing of the administration. But neither the Centre nor the Punjab Government has followed this part of the report. The Amrinder government also needs to raise the state’s revenue.
The man who removes a mountain begins by carrying away small stones. — Chinese proverb |
Cut in fiscal deficit — really? THE interim budget for 2004-05, presented by Finance Minister Jaswant Singh, has been formulated with a clear eye towards the general election. The government is attempting to woo farmers, the middle class and government employees through a series of announcements and promises that have come in the wake of the expensive “India Shining” advertising campaign. Whether the sops would garner more votes for the ruling NDA remains to be seen. However, what has surprised many is the way in which the Finance Minister has been able to sharply reduce the government’s fiscal deficit as a proportion of the country’s gross domestic product (GDP) — from 5.6 per cent in the budget estimate (BE) for the current financial year to 4.8 per cent in the revised estimate (RE). This has been considered remarkable and lauded by representatives of the corporate sector and international credit rating agencies. What Mr Singh has been able to “achieve” is something his predecessors were unable to do most of the time. The fiscal deficit in the RE for 2003-04 has been kept at a level that is a good Rs 21,500 crore below the BE, that too during a pre-election year when the government is expected to splurge on populist schemes. How was this done? The answer is that the fiscal deficit was reduced by a combination of three factors: an economic turnaround, good luck and clever jugglery of figures. There has been a sharp increase in the government’s capital receipts under the head “recoveries of loans”. The budget had estimated that Rs 18,023 crore would accrue to the central exchequer under this head but the RE shows that the amount is a much higher Rs 64,625 crore. The gap of a huge Rs 46,602 crore is thanks to higher receipts from state governments on account of the debt-swap scheme. On the other side, there has been a rise of Rs 39,510 crore in non-Plan expenditure on capital account that includes repayments to the National Small Savings Fund. The difference between the two is more than Rs 7,000 crore that has benefited the government. The reduction in the fiscal deficit has a lot to do with the downward revision of the 2002-03 GDP growth figures by the Central Statistical Organisation (CSO). The CSO had initially claimed that GDP grew by 4.5 per cent in the year that ended in March, 2003. This figure was reduced, first to 4.2 per cent and then to 4 per cent in the “provisional actual” estimates disclosed on January 30, three days before the interim budget was announced. The revision of the GDP figures means that the fiscal deficit at the end of 2002-03 was not really 5.9 per cent of the GDP as had been stated in last year’s RE but 5.4 per cent. To laypersons, this change might appear insignificant but the reality is different. In 2002-03, the country’s GDP at current prices was in the region of over Rs 24 lakh crore (or 24 followed by twelve zeros) and 0.5 per cent of this amount works out to Rs 12,000 crore — not exactly small change by any standard! The low base has made the current year’s GDP growth estimate appear impressive — the Finance Minister stated that GDP growth during the year ending March 2004 would be between 7.5 per cent and 8 per cent. The more important question is whether the 8 per cent rate of GDP growth implicitly assumed for 2004-05 is realistic or over-optimistic. The current year’s high GDP growth would not have taken place had there not been a sharp drop in agricultural production during 2002-03 because of a severe drought. It is also a fact that the Indian economy has never grown at 8 per cent for two successive years. There is more to the curtailment of the fiscal deficit. Total tax revenues are expected to rise by around Rs 3,400 crore — the sharp rise in corporate income tax collections by nearly Rs 11,500 crore has more than compensated for the expected shortfall in collections of excise duty by almost Rs 4,400 crore and personal income tax by Rs 3,800 crore. On the revenue side of the budget, receipts from disinvestment are slated to exceed the BE, dividend payouts by public sector undertakings are approximately Rs 4,200 crore more than what had been budgeted and a windfall has come in the form of extra “other non-tax revenue” worth Rs 3,200 crore, including licence fees from telecommunications companies. The fiscal deficit has also been compressed by reducing the outgo on subsidies by Rs 5,200 crore. Comparing the RE for 2003-04 with the BE, interest subsidies are down by Rs 2,748 crore, food subsidies by Rs 2,600 crore and petroleum subsidies by over Rs 1,500 crore. The reasons are obvious. Interest rates have been soft. Wheat and rice stocks with the Food Corporation of India have come down drastically and petroleum companies (instead of the government) are being asked to bear a bigger subsidy burden. What is evident is that after the elections, prices of kerosene and cooking gas are almost certain to rise. The Railways would also have to hike passenger fares and freight rates if it does not want its financial position to deteriorate after having started 18 new train services to link Delhi to various state capitals. What the Finance Minister has not highlighted is that states have borne the brunt of the fiscal compression. Total resources transferred from the Union to state governments, including collections of small savings, are estimated to fall from 6.2 per cent of GDP in 2002-03 to 5.2 per cent during the current year. Although the economic turnaround has certainly helped Jaswant Singh present a rosy picture of the government’s finances, the extent to which his proposals would help the BJP extend its support base beyond its traditional supporters in the urban middle class is not certain. While the affluent sections have received tangible benefits in the form of lower taxes and duties on various products, including mobile phones and computers, and also in the form of less expensive air travel, the farmers of the country as well as the poor have just been doled out assurances - a plethora of promises of loans at low rates of interest to build houses, crop insurance schemes, credit cards and so on. Whether these promises would be perceived as serious statements of intent or pre-election gimmicks is the big question that will be answered in the coming months. One should not underestimate the intelligence or the maturity of the
electorate. |
Remembering a gentle soul KRISHNA Raj died in his sleep last month as gently as he lived. Irony of his tragic passing away at a relatively young age is that those were the days in which he would have been most happy in discussing and also perhaps participating or observing a bit of “World Social Forum” or “Mumbai Resistance 04” or a bit of both. And, of course, many special analytical articles would have been scrutinised and published by him in coming issues of Economic and Political Weekly (EPW) — A journal respected by conservatives, liberals and revolutionaries all. The unique distinction of the journal was all due to the personal touch of its editor, Krishna Raj. He was one of those few editors and journalists whose name had become synonymous with the journal. Thirtyfive-year-long editorship and association gave EPW the standards and reputation that could sustain the worst impacts of so-called liberalised and neo-imperialist economy. Krishna Raj and EPW played their part in resistance to the onslaught of this neo-imperialist attack. In the early seventies, three journals from three metropolises of the country made their distinctive name: “Frontier” edited by Samar Sen from Kolkata, “Mainstream” edited by Nikhil Chakarvarti from New Delhi and EPW edited by Krishna Raj from Mumbai. All the left intelligentsia of the country was enamoured of these journals having left leanings of their own kind. Along with these journals, “Seminar”, a liberal political monthly, has its own place. A large number of Jawaharlal Nehru University students would be well versed with these journals in pre and post emergency period, apart from well-known intellectuals. “Frontier” and EPW appeared almost simultaneously, both having different names and equally illustrious predecessors, though they were liberal intellectuals and not leftists. “Frontier” was “Now” earlier, founded by Humayun Kabir, Nehruite Congressman and former Central Minister. So was the case with “Economic weekly” brought out by former Central Finance Minister Sachin Chaudhary and getting rechristened as EPW, headed by Krishna Raj. While Samar Sen left the world about a decade ago, Nikhil Da followed after five or six years. No one could even imagine the so early demise of Krishna Raj, who was maintaining his lean body without much of illness or complications and having a gentle control over his body and mind both. I had direct but somewhat limited interaction with Krishna Raj in his very simple office in Mumbai. He had an excellent editorial team which works as friends. Krishna Raj had no airs. My only piece, apart from a few letters signed by many, was published in EPW at the time of student unrest in Jawaharlal Nehru University, New Delhi, during 1983. The title given to the piece was not mine, but it was most attractive and appropriate, “Cracked Mirror”. I had focused upon certain contradictions in the functioning of Jawaharlal Nehru University at that time. I had not continued my interaction with Krishna Raj after I left Mumbai in 1984 after a brief stay of about one and a half years in connection with a bank job. Yet, when I visited Mumbai last year after a gap of 19 years, I was pleasantly surprised that Krishna Raj recognised my voice on the telephone. I could not see him, but we had a very pleasant conversation and I decided to spend some time with him in EPW, when I visited Mumbai next. But the next was never to
come.
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Follow Up This person is Dr Raghbir Singh Khandpur, who stepped out of Jandiala Guru in 1958 to join DAV College, Amritsar, to do B.Sc. His life is not only an eye-opener, but also worth a page in Punjab’s history to motivate the coming generations. “When I topped the matriculation examination, which was then held by Panjab University, I was totally ignorant of all the benefits that I was automatically entitled to. Even today my head bows in reverence to the teachers of those times, who played a crucial role in my life at that juncture. Since I came from a humble home, it was presumed, both by me and my family, that my education was over. So I appeared for a competitive examination for for the post of railway mechanic and was selected. I was about to take up the job but for the role of teachers of the day. “It was baffling for me that a team of teachers from DAV College, Amritsar, was sent by the then Principal, Prof. B S Behl, to ensure that I joined his college. It was this team, which motivated me to join the college. They also informed me that I shall be getting much more than a mechanic’s salary in the form of various scholarships that I was now entitled to. Nobody in Jandiala Guru knew that the Punjab Government gave Rs 50 to the topper. Besides, Rs 22 came from Panjab University as scholarship, Rs 25 was paid by the DAV College management and Rs 20 was given as the refugee student grant. The total amount that I was to receive was Rs 117, which was then more than a clerk’s salary. I was totally ignorant of this aspect. Thanks to the teachers, I ventured to do my B.Sc. and, once again, I topped in the university in 1962”. Principal Behl, once again, encouraged this brilliant boy saying that he was meant for the best institute of the country. That was the Indian Institute of Science (IIS), Bangalore. And, of course, his student did not let him down. He acquired the B E degree with distinction from the IIS in 1965. He was promptly taken in by the CSIO (Central Scientific Instruments Organisation). For the next 24 years, he devoted himself to research at the CSIO and six of his inventions were patented. These were the foetal heart rate monitor, the photo-electric demodulator, the system for gas supply failure-alarm, the automatic temperature controller, the improved three-way solenoid valve device for fluid direction control and management and the process of making an alcohol breath analyser and an apparatus by such process. Besides research, he has published seven books of which “Handbook of Modern Analytical Instruments” is considered to be the “Bible” in this field. Later, Dr Raghbir Singh Khandpur went to the Royal College of Surgeons, London, for post-graduate research and training. His research and study tours also took him to Germany, France, the USA, China, Canada, Japan and Sweden. By 1971 he was posted as Senior Scientist at the CSIO, Regional Centre, Mumbai. Eventually, he rose to the position of Director-General of CEDTI-Centre for Electronics Design and Technology, Ministry of Information Technology, New Delhi, in November, 1997. His role, as a scientist in the CSIO, will bear his stamp for many generations to come. He not only established the Medical Instrumentation Division, which is the most advanced centre of the country, but also created two CEDTI centres at Tezpur in Assam and Aizwal in Mizoram, during his tenure as Director-General, CEDTI. He is also the founder-Director of CEDTI in Mohali. His dedication to his field of research and training is also reflected in his role as a consultant to various national and international organisations, including the UN, WHO, UNDP, UNDIO and the World Bank. He has recieved many honours and awards, including the Independence Day Award from the National Research and Development Corporation in 1989. No wonder, the man who started his journey with Rs 117 in 1958 was invited in May, 2002, to manage the Rs 100 crore Pushpa Gujral Science City project in Kapurthala. In the agrarian society of Punjab, this is the biggest ever science project being established under the guidance of this self-made scientist, Dr Raghbir Singh Khandpur. An unassuming and humble man, his dream now is to ensure that the Science City project should succeed in inculcating love for science in the minds of the primarily agrarian Punjabi youth. When asked why Punjabi youth these days were chasing a materialistic life rather than knowledge and career, Dr Khandpur turned pensive and replied with a rather heavy heart, “The blame should be shard by the parents and the teachers. While parents are no more inculcating any moral values in their children, the teachers, on the other hand, unfortunately are increasingly failing to perform their duties. The teachers of the day are merely doing their jobs with the aim and eyes on their salary alone”. To another query about the respect for scientists in the country, Dr Khandpur said, “It is not just scientists, but almost every other professional, be it the doctor, the engineer, the teacher or the social researcher, all have been pushed to a secondary position by the bureaucracy of the country. In fact, the blame for the brain-drain too should be shared by the bureaucracy. The overwhelming corruption in society is also one of the reasons why scientists or other researchers are neglected. The Indian society today is so obsessed with materialism that any research in science taking place in some dark corner is of no relevance to it.
When someone walks up to you in the middle of a confidential phone call and you don't want them to overhear it, your only option is to cut the call short, and either phone back later or switch to more discreet email or instant messaging. Engineers are now developing a system that makes the phone switch flow seamlessly without breaking the connection. The IBM engineers are now enabling a voice call to be switched to silent instant messaging. At present, both callers must switch, but the developers say as speech-to-text and text-to-speech technologies improve, this may not be necessary, one could use text while the other stays on the phone. The new system, which IBM calls Mercury, will track where you are at work, at home, in the street and plug you into the medium you prefer in that location, whether it be cellphone, email, instant messaging, pager or landline phone. Mercury can also be made “context aware”, by detecting whether a laptop is running a presentation, for example. —
ANI |
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Defence Notes IF India is hosting one of the biggest defence expositions in Asia with an eye to emerge as a future power in the production of defence equipment, can Pakistan stop itself from creating a flutter? The answer is no! As a large number of countries showcased their defence equipment and held press conferences to give out details of their emerging partnerships with India in the military field, the Pakistani military attache, Brig Akram Sahi, reached one of the venues and created a flutter by “firing” away a volley of questions, taking everyone by surprise. Brigadier Sahi pointed his questions at the Swedish who were here to showcase their guns and had announced that India was seeking to purchase the upgraded version of the Bofors Howitzers, which had proved to be Pakistan’s bane during the 50-day war in Kargil. He wanted to know if the new gun being offered to India had been tested on the Siachen glacier, the world’s highest battlefield which India and Pakistan claim, and whether ithad night-vision capabilities. He also wanted to know about the delivery schedule of the guns but was cut short by the new owners of the Howitzers, SWS Defence. Its Chairman, Hakan Kangert, pointed out to him politely but firmly, “this is classified information. I can’t give you the information”. Kangert also pointed out that “legislative provisions in Sweden prevented the supply of weapons systems to Pakistan”. Qadeer Khan The latest talk doing the rounds in the South Block headquarters is the Abdul Qadeer Khan episode. The scientist whom everybody in Pakistan hailed as an icon and the Father of Pakistan’s Nuclear Bomb has been in the doghouse since last year when skeletons started coming tumbling out of the country’s nuke cupboard. Indian newspapers published screaming headlines on February 5 about the much-publicised meeting between Dr Khan and President Pervez Musharraf. These reports also talked of Dr Khan’s “apology” to the nation in a live telecast by PTV after this meeting. “The Dawn”, Pakistan’s premier English daily, which has a reputation of traditionally rich contacts with the military establishment, spilled the beans on February 5 when it said that Dr Khan’s televised address was “recorded” before his meeting with General Musharraf. The relevant quote from “The Dawn” story is as follows: “Dr Khan read out a statement on PTV. The statement which, according to PTV sources, had been recorded before his meeting with the President, mentioned of ‘good faith’ for his nuclear proliferation activities.”
MoD’s working The acquisition of the new generation Konkurs-M anti-tank guided missile, the reorganisation of infantry battalions, the induction of two Krivak class frigates, INS Trishul and INS Talwar, and one extra fast-attack craft in the Navy and the thermal imaging sights for DMP-II ATGM were some of the major achievements of the Ministry of Defence during last year. This has been stated in a brief statement on activities and achievements of the Ministry of Defence during last year which was circulated to the members of both Houses of Parliament earlier in the week. The profit after tax of the eight defence public sector undertakings went up to Rs. 751.56 crore in 2002-03 as against Rs. 634.88 crore achieved in 2001-02. The value of production and sales of these undertakings was to the tune of Rs. 5946.32 crore and 5100.21 crore respectively. In the quest for self-reliance in the crucial sector of defence, efforts are being made to indigenise defence equipment, wherever technologically feasible and economically viable, and 382 items were taken up for development. Bharat Dynamics Limited (BDL) has started the manufacture of Konkurs-M and three UBK-20 missiles. The Defence Research and Development Organisation also made significant progress in its R and D programmes/projects during the year. |
May the water, herbs, vegetables and the entire universe be full of peace. — Rig Veda I look upon all creatures equally; none are less dear to me and none more dear. But those who worship me with love live in me, and I come to life in them. — Shri Krishna (Bhgavad Gita) In tribulation, immediately draw near to God with confidence, and you will receive strength, enlightenment, and instruction. — Saint John of The Cross Only she is loved Who prays to her Lord With her heart. — Guru Nanak |
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A village boy acquired wings by doing matriculation, first class first, in the joint Punjab and flew out with a promise of Rs 117 in 1958. Today he is realising his dream of setting up a Rs 100 crore science city project. His long flight of 46 years is marked by overwhelming heights.